Business Debt Recovery

Business debt recovery is inevitable in business. Regardless of how good your credit management policies and procedures are it is likely that your business will have some experience with bad debts.

When you have to recover these bad debts, it is advisable to employ some restraint and a measured, calculated approach. Select the most successful method to recover the debt while maintaining the relationship with your customer / client. Or alternatively, engage a professional legal Business debt recovery company to do this for you.

Business Debt Collection Qld

It is important that you follow up with the debtor as soon as the invoices become overdue. Call them or email them to ensure that they are aware of their obligation to pay, that they have received the invoices and that they are aware that they are now overdue.

In a friendly way, try to understand what the problem is – talk to them in a friendly manner and write everything down. It could be that they are experiencing some temporary cash flow problems, perhaps they are trying to recover bad debts too. You need to decide how important this client / customer is to your business. If they are a valued client, you may decide to extend their credit terms, or accept a payment plan.

Business Debt Collection Letter

If the lines of communication break down, or you can’t get any response from the debtor, then it may be advisable to send a letter of demand. A letter of demand from a law firm on law firm headed paper shows the debtor that you mean business. An official letter of demand sends a clear message to the debtor that you are willing to take legal action to recover this debt.

A lot of debtors use the “bury their head in the sand and hope it goes away” approach to paying their overdue debts. A letter of demand forces them to take their heads out and acknowledge the debt and their obligations.

Debt Recovery Legal Action

If you still have no luck with the debtor after a letter of demand, then it may be time to take legal action. Be prepared to follow through with any kind of warning about legal action expressed in your letter of demand.

Three main courts deal with civil matters in which involve debt disputes, depending on the volume of the debt:

General claims pertaining to debt or damages as high as $150,000.00 are heard in the Magistrates Court.

Claims for debt recovery or damages as much as $750,000.00 are heard in the Brisbane District Court.

Claims for debt recovery or damages over $750,000.00; is heard in the Brisbane Supreme Court.

Every business at some point in their lifespan has to do the hard job of chasing debtors to pay their debts. Unfortunately, some debtors can be really difficult during this time.

It is advisable to engage cost-effective legal debt recovery professionals who have experience and debt recovery solutions to suit you, to do this work for you, leaving you or your accounts team free to attend to making money in your business.Step 1 – Call 1300 545 133
Step 2 – Submit Your Debt
Step 3 – We Recover the Debt